Steria 2002 results operating profit doubles in the second half of 2002

STERIA 2002 results OPERATING PROFIT DOUBLES in the SECOND HALF of 2002 A SUCCESSFUL STRATEGIC ADVANCE On 7 April 2003 the Supervisory Board of the STERIA GROUP SCA examined the consolidated accounts submitted by Management for the year ending 31 December 2002. The accounts consolidate the bulk of Integris Europe for the first time and underline the success of its very rapid integration, despite a particularly difficult market climate. Key points are that: Consolidated revenue doubled to ?1018 million, from ?509 million in 2001, as STERIA established itself among Europe's Top Ten IT services companies with international business contributing 60% of total revenue. Operating profit doubled between the first and second halves of 2002. This reflected the recovery in profitability of the recently acquired businesses, already begun in the first half of 2002, and the first impact of measures taken to adapt to the tougher business climate. Operating profit in 2002 was ?30.2 million, or 3% of revenue. Net profit (group share) was ?8.9 million after deducting ?5.4 million in exceptional costs and ?4.6 million in goodwill amortisation. Strict control of working capital and on-target restructuring costs allowed Steria to reduce its net debt as of 31 December 2002 to ?8 million. The Management is to propose a dividend of ?0.18 per share to the Shareholders General Meeting, unchanged from the dividend paid in respect of 2001. The dividend will be paid on 4 july 2003 and will be accompanied by a tax credit in accordance with prevailing conditions. This proposed dividend reflects the confidence of the Supervisory Board and Management in the Group's capacity to continue growing whilst improving profitability. 1H02 2H02 2002 2001 In ?m Revenue 493 525 1018 509 Operating profit 9.4 20.7 30.1 36 Net profit (before 4.8 13.3 18.1 22.5 exceptionales and goodwill amortisation Net profit (after 2.9 5.9 8.9 18.8 exceptionals and goodwill amortisation) EPS (before 1.09 1.5 exceptionals and goodwill amortisation) EPS (after 0.53 1.26 exceptionals and goodwill amortisation) Successful integration with risk under control. The successful integration of Integris Europe shows that the risks identified when its acquisition was announced are now under control. The integration strengthens Steria's ability to increase its market share in Europe and so better meet demand from large corporate clients. This gives Steria the critical mass needed to roll out its Design-Build-Run capabilities, placing it in a position to tender for major systems integration and outsourcing contracts. It also demonstrates the relevance of a Human Resources and sustainable development policy characterised by 35 years of continued growth, shareholding opportunities for employees and a policy of human consideration and openness - all values that are vital when welcoming new employees recruited directly by Steria or joining the Group following an acquisition. Outlook The success of this integration, swiftly and efficiently completed in 2002, has been particularly important in terms of preparing Steria to face another difficult year in 2003. Given the current unstable geopolitical situation and economic environment, a major recovery in the European IT services market is by no means assured. François Enaud, Chairman and CEO of Steria affirms that: "Despite these market conditions, our key objective is to boost operating profit by maintaining our existing cost-cutting programme and continuing to strengthen our position as an IT services global operator for large European clients. STERIA is listed on the Euronext First Market Euroclear Code : 7291, Bloomberg Code : RIA FP, Reuters Code : TERI.PA Euronext 150, SBF 120, IT CAC 50, MIDCAC For further information, consult the Internet site: http://www.steria.com Investor Relations Press Relations Yves ROUILLY Antoine PERNOD Tel. : +33 1 34 88 61 95 Tel. : +33 1 34 88 94 95 e-mail. e-mail. yves.rouilly@steria.fr antoine.pernod@steria.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/10/09/20031009BIT01180/wkr0001.pdf